MANDATORY REQUIREMENT TO OBTAIN A TAX CLEARANCE CERTIFICATE

The Malawi Revenue Authority (MRA) is reminding the business community and the general public that a Tax Clearance Certificate (TCC) is issued by the Commissioner General to a taxpayer who has complied with the provisions of the Taxation Act.

A taxpayer is considered compliant if all returns are filed and payment of taxes due are settled, or when the person has entered into an arrangement with the Commissioner General to settle the taxes due.
The conditions for issuance of a TCC are:
1.    The taxpayer must lodge an application for a TCC in writing

2.    The applicant should be registered, except where the applicant is not subject to income tax or is exempt from income tax

3.    The applicant should have submitted all tax returns due including tax returns for all tax collection methods that the taxpayer is registered for such as Pay As You Earn (PAYE), Withholding tax, Provisional tax etc.

4.    The applicant should have no outstanding tax arrears
What should a taxpayer do in case of tax compliance gaps;
•    Gaps in tax return submission: -
Ensure that all tax returns that remained unsubmitted are submitted to MRA. A TCC is issued on submission of all outstanding tax returns

•    Outstanding tax arrears: -
Ensure that all outstanding tax arrears are settled. The applicant is allowed to submit a payment plan to the Commissioner General for approval where tax arrears are to be settled in instalments

Note: MRA encourages all tax payments to be made through the approved e-payment channels.
Transactions that are mandatory for a person to be issued with a TCC include:•    Renewal of Certificate of Fitness (COF) for commercial vehicles

•    Renewal of Business Residence Permit (BRP)

•    Renewal of professional business licenses and permits of medical practitioners or dentists, legal practitioners (lawyers), engineers and architects who are engaged in private practice on their own behalf as a private practice or in partnership with another private practitioner(s)

•    Renewal of a certificate of registration under the National Construction Industry Council Act

•    Transfer of a company as a going concern

•    Externalization of funds to non-resident service providers whose source is deemed to be Malawi

•    Renewal of Temporary Employment Permits (TEPs)

•    Renewal of business licenses by the Ministry responsible for industry and trade

•    Renewal of tourism licenses by the Ministry responsible for tourism

•    Renewal, extension or transfer of mining licenses, or transfer of mineral rights by the Ministry responsible for energy and natural resources

•    Renewal of telecommunications licenses by the Malawi Communications Regulatory Authority (MACRA)

•    Renewal of energy licenses by the Malawi Energy Regulatory Authority (MERA)

•    Change of ownership of a companypl

•    Renewal of registration of public transport conveyances by the Road Traffic Directorate (RTD)

MRA is further reminding all taxpayers to present all the necessary documents when applying for a TCC in order to avoid delays. Our service delivery timelines are dependent on your cooperation to attach mandatory documents in this process.

Contact us: Telephone: +265 (0) 1 832 685 | WhatsApp: 0996278690 | Toll-Free: 672 | E-mail: Call Centre@mra.mw | www.mra.mw

John S. Biziwick
COMMISSIONER GENERAL